The ongoing struggles in China's real estate sector and a decline in steel production have reduced coking coal consumption in China, the world’s largest importer. Additionally, weak buying activity in alternative markets such as India and Europe has intensified the downward pressure on Australian coking coal prices.
In the Chinese domestic market, coking coal prices dropped by RMB 2/t (approximately $0.3/t) to RMB 1,305/t ($182/t). Shipments from Australia remain at high levels. However, due to surplus stock at Chinese ports, importers have reduced their purchasing volumes. In India, buying activity remains weak, and some Indian steel producers are negotiating lower prices. Meanwhile, in Europe, a major steel producer lowered its offer for 54,000 tons of Australian Premium Low Vol (PLV) coking coal from $182/mt FOB to $174/mt FOB, signaling sellers’ urgency to close deals. SteelRadar assessed the price of Australian-origin Premium Low Vol (PLV) coking coal at $174/mt FOB, marking an $8/mt decline over the past five days.
In summary, weaker demand in China, coupled with its real estate crisis, is reducing coking coal consumption. High supply from Australia and sluggish demand in alternative markets such as India are further driving prices downward. Sellers are accelerating price cuts in an effort to clear stock.
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